DS 


UC-NRLF 


SB    53    755 


00 

in 


COTT 


VISCOUNT    MOTONO 
DR.    PAUL    S.    REINSCH 
BARON     SHIBUSAWA 
LINDSAY    RUSSELL 
JUDGE    E.     H.    GARY 
JULEAN     H.    ARNOLD 
WILLIAM    H.    WILLIAMS 
W.    F.    CAREY 
ANSON     W.    BURCHARD 


66  W  BELIEVE  in  and  have 
^  advocated  co-operation, 
between  individuals,  corporations 
and  nations  as  distinguished  from 
hostility  and  bitterness  ;  an  ear- 
nest effort  to  work  together  and 
to  help  one  another  ;  to  live  and 
to  let  live ;  to  act  as  business 
friends  rather  than  as  business 
enemies  ;  to  compete,  but  openly, 
fairly,  considerately.  In  our 
country,  big  business  rivals  have 
acted  in  accordance  with  these 
principles  and  with  financial  suc- 
cess to  all  concerned." — -Judge 
Elbert  H.  Gary. 


THE  ERA  OF  THE  PACIFIC. 


An  Address  by  Viscount  Motono,  Foreign  Minister  of 
Japan  at  the  America- Japan  Society  Banquet,  May  H* 


In  a  strong,  frank  address,  delivered  before  the 
America-Japan  Society  at  its  inaugural  banquet,  May 
11,  Viscount  Motono,  Foreign  Minister  of  Japan, 
presented  the  problem  of  American-Japanese  relations 
in  a  light  that  gave  to  this  question  added  significance. 
His  address  follows  : 

"  It  seems  to  me  that  there  are  few  questions  of 
such  vital  moment  to  the  future  welfare  of  mankind  as 
that  concerning  the  relations  of  Japan  and  the  United 
States,"  said  the  Foreign  Minister.  "  The  Era  of  the 
Pacific  is  already  dawning,  and  it  promises  to  surpass, 
in  the  vastness  of  the  sphere  of  its  activities  and  influ- 
ence and  in  the  profundity  of  its  meaning,  that  of  the 
Mediterranean  as  well  as  that  of  the  Atlantic.  At  last, 
all  the  forces,  old  and  new,  of  the  East  and  of  the  West 
will  meet.  Will  they  unite  or  will  they  clash  ?  *"  This 
question  is  to-day  challenging  an  answer  from  every 
serious  and  thinking  man  the  world  over. 

"  Without  meaning  at  all  to  ignore  other  great 
factors,  I  may  say  that  it  lies,  in  a  large  measure,  in 
the  power  of  the  United  States  and  Japan  to  deter- 
mine the  answer  to  this  question ;  and,  on  the  answer, 
for  which  they  will  be  held  largely  responsible,  the 
future  happiness  and  progress  of  the  world  will  depend. 
Viewed  in  this  bearing,  the  relations  between  Japan 
and  the  United  states  become  a  matter  of  supreme 
importance  not  only  to  the  two  nations  themselves  but 
to  humanity  in  general.  With  the  awful  responsibility 
they  owe  to  humankind,  will  Japan  and  the  United 
States  work  hand  in  hand  or  will  they  turn  their  backs 
no  each  other?  I  am  hopeful  that  our  two  nations 

36195? 


will  always  find  some  essential  principles  of  human-kind 
on  which  to  base  abiding  relations  of  mutual  trust  and 
confidence. 

"  In  the  meantime,  it  is  important  that  we  should 
know  each  other.  Knowledge  is  the  only  foundation 
of  true  understanding  and  an  enduring  peace  among 
nations.  In  this  regard,  I  welcome  most  heartily  the 
founding  of  the  America-Japan  Society,  and  I  am  con- 
fident, Mr.  President,  that  the  Society,  under  your 
able  presidency  and  under  the  wise  guidance  of  the 
other  officers  associated  with  you,  will  form  yet 
another  strong  link  across  the  Pacific  and  will  help 
the  two  nations  in  making  long  strides  toward  a 
complete  understanding  and  the  firm  friendship.  I  join 
His  Excellency  Count  Terauchi  in  the  congratulations 
so  ably  and  fitly  expressed." 


THE  ATTRACTION  OF  CHINA. 


An  Address  by  Dr»  Paul  Reinsch  Before  the  American 
Association  of  Peking,  May  H* 


Dr.  Reinsch  said  that  they  were  all  very  happy  to 
welcome  in  their  midst  fellow-citizens  from  the  United 
States,  some  of  whom  were  directly  interested  in  Chinese 
affairs.  Chinese  business  methods  were  only  one  degree 
less  confusing  than  Chinese  politics.  The  Chinese 
business  sense  was  admirable  in  transactions  between 
man  and  man,  but  it  rather  tended  to  lose  itself  in  the 
air  where  big  corporation  finance  was  concerned. 
Chinese  were  apt  to  take  credit  as  an  opportunity  of 
getting  money  and  not  ability  to  perform.  A  year  ago 
a  man  came  to  him  and  said  that  he  had  discovered  a 
solution  of  the  problem  of  Chinese  finance.  He  was 
not  in  authority  himself  but  said  that  he  knew  a  man 
who  was  in  authority.  He  was  asked  to  unfold  his 
scheme,  whereupon  he  inquired  whether  it  was  possible 
to  buy  silver  direct  from  the  United  States,  which  would 
effect  such  a  saving  by  dispensing  with  the  profits  of 
middlemen  and  banks.  The  man  was  informed  that 
after  all,  the  saving  would  not  be  so  enormous.  The 
man's  ardour  was  somewhat  cooled  but  he  said  he 
would  still  do  it.  "  How  much  silver  would  you  buy  ?  " 
asked  the  speaker.  "  Oh,  $  200,000,000,"  replied  the 
man.  "  How  are  you  going  to  pay  for  it  ?  "  he  was 
asked.  "  In  Treasury  notes,"  he  replied.  "  But  they 
would  never  be  accepted,"  he  was  told.  "  Why  not  ?  " 
the  man  asked.  "  They  are  perfectly  good.  China  has 
never  once  in  her  history  defaulted.  Treasury  notes 
are  as  good  as  gold."  "  But  the  miners  cannot  accept 
them,"  it  was  pointed  out.  "  Would  it  be  better, 
perhaps,"  continued  the  man,  "  to  have  the  Treasury 
notes  secured  ?  "  "  Yes,  it  might  be  so  considered,"  the 


speaker  told  him.  "  What  security  do  you  propose  ?  " 
"  You  know  the  great  treasures  in  our  National  Museum. 
We  can  pledge  them  as  security."  "  You  mustn't  do 
that,"  said  the  speaker.  "  It  is  possible  that  you  might 
not  be  able  to  pay  and  then  the  treasures  will  be  taken 
away."  "  That's  why  we  want  to  do  it !  You  Ameri- 
cans are  our  friends  and  we  know  you  would  never  do 
it !  "  (Laughter.) 

The  speaker  went  on  to  say  that  although  that 
particular  man  was  inexperienced,  there  ware  many  men 
in  authority  who  were  unable  to  distinguish  genuine 
security  from  security  that  was  unacceptable.  When  an 
American  financier  came  across  such  a  type  of  man,  he 
was  apt  to  be  discouraged,  because  he  was  given  a  fair 
run  for  his  money,  found  the  man  he  was  dealing  with 
full  of  shrewd  business  acumen  although  some  of  his 
ideas  were  nebulous.  It  was  no  child's  play  to  do 
business  with  that  type  of  man.  There  was  no  doubt  that 
some  exceedingly  foolish  contracts  had  been  entered  into 
relative  to  railways,  harbour  improvements  and  electric 
light  works  that  belonged  to  others.  (Laughter). 
When  Americans  came  face  to  face  with  that  kind  of 
psychology,  they  were  apt  to  be  discouraged,  but  from 
another  point  of  view,  the  field  was  a  wide  one.  At 
the  risk  of  appearing  to  indulge  in  self-adulation,  the 
speaker  declared  that  Americans  had  the  greatest  ex- 
perience in  the  field  of  business  and  alluded  to  elements 
of  new  saving,  producing  and  credit  systems.  It  was 
sometimes  said  that  China  was  no  place  for  the  invest- 
ment of  American  capital  and  that  South  America 
furnished  stronger  attractions  for  American  capital. 
But  it  could  not  be  denied  that  Americans  were  taking 
an  increasing  interest  in  China.  Two  years  ago,  the 


Inspector-General  of  the  Chinese  Maritime  Customs 
informed  him  that  there  were  two  or  three  vacancies  in 
the  Customs  Service  and  that  applications  from  Ameri- 
cans would  be  welcome.  He  communicated  with  the 
United  States  and  very  soon  the  Inspector-General  was 
flooded  with  stacks  of  applications  from  young  Ameri- 
cans for  the  vacant  posts.  The  Inspector-General's  hair 
stood  on  end.  He  came  to  him  and  said:  "What 
shall  we  do  ?  "  The  flood  of  applications  fairly  swamped 
him  and  it  took  one  clerk  to  deal  with  the  applications. 
Here  were  college-bred  American  young  men  ready  for 
the  world  who  were  anxious  to  come  to  China.  That 
was  but  a  single  instance.  More  and  more  young  men 
were  being  attracted  to  China.  Regarding  the  greater 
qestion  of  American  finance,  the  measure  of  business 
scope  remained  to  be  seen.  Regarding  South  America 
as  a  field  for  the  investment  of  American  capital,  there 
was  this  to  be  remembered — that  while  South  America 
was  not  to  be  disdained,  they  were  apt  to  be  disap- 
pointed, as  that  country  was  not  developed  and  it  had 
not  the  consuming  population  of  China.  For  that  reason 
he  believed  that  China  would  occupy  a  very  important 
place  in  the  minds  of  American  capitalists  and  business 
men.  As  far  back  as  1786,  the  first  Consul  ever 
appointed  to  China  was  an  American  and  as  early  as 
the  year  1 800  they  had  an  Asiatic  Bank  in  the  United 
States.  In  conclusion,  His  Excellency  said  that  every 
representative  of  American  interests  who  came  to  China 
was  on  the  right  track. 


THE  JAPAN  SOCIETY'S  WORK. 


The  Views  of  Baron  Shibwsawa,  President  of  the 
Advisory  Committee* 


As  president  of  the  advisory  committee  of  the 
Japan  Society  of  New  York,  Baron  Shibusawa  made 
an  address  at  the  banquet  given  in  Tokyo  on  April  20 
in  honor  of  Mr.  Lindsay  Russell,  president  of  the 
society.  Baron  Shibusawa's  remarks  were  witty  and 
yet  most  expressive  of  appreciation  for  the  work  ac- 
complished by  Mr.  Russell  in  the  United  States.  He 
referred  to  the  California  question  as  an  unfortunate 
incident  which  time  would  solve  with  a  more  correct 
understanding.  The  large  questions  were  more  related 
to  the  attitude  of  the  people  in  the  larger  cities,  New 
York,  Chicago,  Philadelphia  and  elsewhere.  Baron 
Shibusawa  spoke  without  preparation,  for  the  subject 
was  one  near  to  his  heart  and  to  which  he  had  devoted 
himself.  In  referring  to  co-operation  he  said  he  realized 
when  in  New  York  several  years  ago  that  the  wealth  of 
America  would  in  time  seek  an  outlet  in  the  Orient.  He 
feared  at  that  time  he  might  be  misunderstood.  Since 
then  Judge  Gary  has  visited  Japan  and  returned  to 
America  and  has  endorsed  the  idea  which  he  suggested 
years  before,  and  which  is  now  on  the  eve  of  practical 
realization.  A  new  stage  in  the  relationship  between 
the  two  countries  has  been  opened,  and  to  Mr.  Lindsay 
Russell  and  his  invaluable  and  indefatigable  work,  the 
greatest  share  of  credit  must  be  given. 

Baron  Shibusawa  spoke  of  a  conversation  he  had 
with  President  Wilson  at  Washington  when  the  Presi- 
dent, in  referring  to  him,  said :  "  The  footsteps  of 
travelers  such  as  you  obliterate  the  boundary  lines 
between  nations."  The  Baron  said  he  could  now  return 
this  compliment  to  Mr,  Lindsay  Russell,  with  the  hope 


that  any  stones  remaining  in  the  path  would  be  smooth- 
ed out  through  the  work  so  well  done  by  Mr.  Russell. 
As  the  guest  of  the  .evening  was  leaving  for  China 
on  the  morrow  this  dinner  must  be  taken  as  a  "  wel- 
come," and  a  "  farewell  "  dinner  would  not  be  given 
until  after  Mr.  Russell's  return  from  China.  Speaking 
of  co-operation,  Baron  Shibusawa  said  the  interests  of 
Japan  and  America  in  the  Orient  will  be  close  as 
years  go  by,  not  for  exploitation  of  China  but  to  help 
in  the  great  work  of  assisting  China  to  develop  herself. 


THE  CASE  FOR  CO-OPERATION. 


An  Address  by  Mr.  Lindsay  Russell,  President  of  the 
Japan  Society  of  New  York. 

01 

Mr.  Lindsay  Russell,  president  of  the  Japan 
Society  of  New  York,  made  the  following  address  at 
a  dinner  tendered  in  his  honor  by  the  Advisory 
Council  of  that  organization  in  Tokyo  : 

Mr.  Lindsay  Russell  responded  as  follows : 

"  I  cannot  allow  myself  to  accept  as  personal  all 
of  your  tributes  and  kindly  expressions,  but  shall 
assume  that  they  are  intended  for  me  in  a  sense  as  the 
humble  medium  through  which  you  are  conveying  to 
my  co-workers  and  colleagues  in  New  York,  your 
appreciation  and  approval  of  their  earnest  endeavors 
for  a  cordial,  close  and  continuons  relationship  between 
Japan  and  the  United  States. 

"  I  pressume  I  should  say  something  this  evening 
about  the  constructive  work  of  the  Japan  Society.  Its 
membership,  when  I  was  here  five  years  ago,  was 
about  five  hundred.  It  is  now  more  than  1,100.  Of 
these  over  a  thousand  are  Americans,  scattered 
throughout  the  United  States  and  including  every  pro- 
fession and  vocation.  Its  income  last  year  was  52,000 
yen.  We  have  a  very  influential  Board  of  Directors 
representative  of  business  and  finance.  There  are  three 
Japanese  on  the  Board  well  known  to  you,  Mr.  Arai, 
Dr.  Takamine  and  Mr.  Ichinomiya. 

"  It  has  been  the  privilege  of  the  Society  to  welcome 
and  entertain  many  of  the  distinguished  Japanese  who 
have  visited  the  United  States  during  the  past  ten  years. 
It  has  conducted  a  nation-wide  educational  campaign  to 
make  our  countries  better  acquainted  and  has  published 
many  books.  It  circulates  a  monthly  news  bulletin 
and  also  a  trade  bulletin.  The  Society  encourages 

—    10    — 


travel  to  Japan,  and  Americans  who  come  here  generally 
return  as  friends  of  Japan  and  help  to  create  a  better 
understanding.  We  have  recently  had  the  passenger 
agents  of  all  the  great  trans-continental  railways  and 
Pacific  steamship  companies  in  conference  in  New  York, 
with  the  view  of  working  out  a  plan  of  co-operation 
in  encouraging  travel  to  the  Orient.  One  idea  is  to 
adopt  a  phrase  or  slogan  such  as  "  The  Orient  calls 
you.  Visit  Japan,  China  and  Hawaii."  All  of  the 
companies  are  to  be  asked  to  print  this  slogan  in  all 
their  travel  literature,  so  that  millions  of  persons  will 
read  it  over  and  over  again.  The  idea  will  thus  become 
nationalized  and  popularized.  Mr.  Herbert  S.  Houston, 
one  of  the  proprietors  of  the  World's  Work,  and  presi- 
dent of  the  Advertising  Club  of  America,  is  a  director 
of  the  Japan  Society  and  chairman  of  this  committee. 
"  We  welcome  the  organization  in  Tokyo  of  the 
America- Japan  Society,  which  you  have  formed  re- 
cently under  the  presidency  of  Viscount  Kaneko.  If 
this  organization  and  the  Japan  Society  of  New  York 
are  kept  in  energetic  co-operation  through  frequent 
exchange  of  visits  of  officers  and  ideas,  efficient  and  im- 
portant work  can  be  accomplished.  We  will  at  once 
form  in  New  York  a  committee  of  three  on  co-opera- 
tion composed  of  forward  thinking  men,  of  constructive 
minds,  and  I  hope  that  a  similar  committee  will  be 
formed  here.  Such  a  committee  in  time  will  become 
very  efficient  and  may  influence  the  policy  of  financiers, 
business  men  and  even  our  respective  governments. 
Thus  public  opinion  would  be  shaped  by  practical  men 
rather  than  by  international  theorists  or  muckrakers,  the 
sale  of  whose  articles  and  whose  living  depends  upon 
the  number  of  startling  and  sensational  conjectures 


which  they  can  devise.  We  can  no  longer  depend 
entirely  on  conventional  methods  in  strengthening 
international  ties.  We  should  have  master  minds  in 
both  Societies.  The  problem  is  how  to  get  them  to 
give  the  time  and  attention  to  organizing  methods  of 
international  co-operation. 

"  A  vital  problem  to  which  the  committees  might 
immediately  address  themselves  is  that  of  cleaner 
publicity,  more  accurate  information,  better  communi- 
cation, with  reasonable  cable  tolls,  all  of  which  is  the 
key  to  a  better  understanding,  as  well  as  commercial 
progress.  The  wireless  telegraph  is  destined  to  shortly 
energize  the  Far  East  and  awaken  China.  Soon 
there  will  be  no  East  or  no  West.  The  magic  wand 
of  Marconi  is  making  the  world  one  vast  whispering 
gallery. 

"  During  the  past  three  years  we  have  had  in 
view  the  development  of  a  Japan-America  Chamber  of 
Commerce  with  the  object  of  encouraging  trade,  travel 
and  the  investment  of  American  capital  in  the  Orient. 
Let  me  urge  upon  my  friends  here  the  importance  of 
their  co-operation.  In  this  connection  allow  me  to  ex- 
press the  hope  that  China  will  see  the  importance  of 
improving  her  status  in  the  United  States,  and  I  see  no 
more  effective  way  it  can  be  done  than  in  co-operation 
with  Japan.  This  is  the  age  of  co-operation  and 
conciliation.  China  would  do  well  to  follow  the  advice 
of  that  master  in  the  American  business  world,  Judge 
Gary.  To  quote  his  words :  "I  believe  in  and 
have  advocated  co-operation,  between  individuals,  co- 
operations and  nations  as  distinguished  from  hostility 
and  bitterness ;  an  earnest  effort  to  live  and  let  live  ; 
to  act  as  business  friends  rather  than  as  business 

—    12    — 


enemies  ;  to  compete,  but  openly,  fairly,  considerately." 
China  would  do  well  to  cultivate  the  friendship  of 
Japan.  It  would  serve  to  encourage  a  freer  flow  of 
American  capital  into  her  territory. 

"  Every  traveller  to  Japan  usually  visits  China, 
every  merchant  doing  business  with  Japan  is  likely 
also  to  deal  with  China,  the  very  ships  that  carry 
merchandise  between  the  United  States  and  Japan  also 
serve  China.  Japanese  activities  and  enterprise  are 
taking  millions  of  yen  to  China.  In  fact,  from  no 
matter  what  angle  the  situation  be  viewed,  the  keynote 
is  co-operation.  But  instead  of  this,  would-be  friends 
of  China  are  endeavoring  to  disturb  the  good  relations 
between  the  United  States  and  Japan  in  the  supposed 
interest  of  China  and  by  an  ill-advised  propaganda  are 
weakening  China's  credit  in  our  financial  world. 

"  Broadly  speaking,  Americans  who  have  any 
interest  in  the  Far  East  at  all  are  equally  interested  in 
China  and  Japan.  It  would  be  to  the  interest  of 
Japan  and  China,  as  well  as  the  United  States,  if  a 
Japan-China  Bureau  were  established  in  New  York, 
managed  for  the  joint  interest  of  these  countries. 
However  divergent  the  interests  of  Japan  and  China  in 
the  Orient  may  be,  they  are  almost  identical  as  respects 
the  benefits  to  be  derived  from  contact  with  the  United 
States.  Let  me  mention  the  community  of  interests 
upon  which  China's  progress  and  to  some  extent 
Japan's  material  prosperity  depends  :  capital  for  invest- 
ment, increase  of  trade  and  travel,  improved  trans- 
portation, lower  cable  tolls,  funds  for  medical  research, 
hospital  and  educational  work. 

"  Each  country  is  striving  to  express  and  interpret 
itself  to  the  outside  world   in  its  own  way.     We  have 

—    13    — 


in  New  York  for  instance  the  Japan  Society  and  the 
China  Society,  the  American-Asiatic  Association,  the 
Asiatic  Institute,  the  East  and  West  News  Bureau, 
the  Far  East  Bureau  and  many  others,  operating  with 
varying  degrees  of  success.  Magazines  and  newspapers 
devoted  to  the  Far  East  come  and  go  in  rapid  succes- 
sion. It  would  seem  to  be  far  wiser  and  more  practical 
if  all  of  these  activities  were  co-ordinated  and  working 
in  co-operation. 

"  If  I  could  bring  out  one  message  to  you,  if  I  could 
render  Japan  but  one  service,  it  would  be  to  impress 
on  your  bankers  and  business  men  in  this,  the  hour  of 
your  greatest  prosperity,  that  you  look  to  the  future 
and  prepare  now  for  the  economic  struggle  that  is  to 
come.  I  do  not  presume  to  offer  advice  regarding 
your  internal  affairs,  but  as  respects  your  status  in  the 
United  States,  concerning  which  I  have  given  thought 
for  many  years,  I  may  perhaps  speak.  Let  me  suggest 
that  you  make  prompt  endeavor  to  impress  on  the 
American  mind  your  economic  development  and  finan- 
cial strength,  your  dominant  position  in  the  Far  East, 
your  policy  toward  China,  that  you  do  not  adopt  dry 
and  tedious  statistical  methods,  but  that  you  consult 
advertising  experts  such  as  are  employed  by  the  New 
York  banks  and  railways. 

"  I  would  especially  call  your  attention  to  the 
advertising  policy  of  the  American  Telephone  and 
Telegraph  Company  and  the  Union  Pacific  Railway, 
each  of  which  is  spending  fabulous  sums,  not  with  the 
idea  of  selling  anything,  but  for  the  purpose  of  nation- 
alizing an  idea.  Beware  of  false  press  agents  and  fake 
advertising  agents.  They  are  the  parasites  of  the  busi- 
ness world.  Some  time  ago  the  sugar  plantations  in 

—    14    — 


Hawaii  were  being  damaged  by  rats.  Under  expert 
advice  the  mongoose  was  brought  to  Hawaii.  After 
the  mongoose  exterminated  the  rats,  he  set  in  to  destroy 
the  sugar  cane  and  now  they  are  importing  a  special 
tick  which  it  is  said  will  destroy  the  mongoose.  I 
wonder  if  Dr.  Noguchi  and  Dr.  Takamine,  your  great 
discoverers  in  medicine  and  chemistry,  cannot  discover 
something  that  will  destroy  the  vermin  that  infests 
international  intercourse. 

"  In  conclusion  let  me  thank  you  for  all  that  you 
are  doing  toward  a  better  understanding  between  the 
United  States  and  Japan.  Baron  Shibusawa  is  a  great 
leader  in  this  field,  as  he  has  been  for  years  in  that  of 
industry.  His  visits  to  the  United  States  have  created 
a  lasting  impression.  The  passing  of  your  Red  Cross 
contingent  through  the  United  States  on  its  mission  of 
mercy  to  England  was  one  of  those  characteristic 
manifestations  of  the  Japanese  heart  that  awakened 
our  imagination  and  touched  the  well  springs  of  our 
kindlier  emotion.  And  now  you  come  to  us  with  your 
usual  thoughtful  kindness  in  an  hour  when  we  mourn 
the  loss  of  our  late  Ambassador  and  offer  a  warship 
to  transport  the  remains  to  the  United  States.  I  do 
not  speak  for  my  government,  but  I  am  sure  that  I 
voice  the  sentiment  of  my  people  when  I  say  that  your 
kindly  national  sympathy,  as  you  thus  express  it  to  a 
bereaved  family  and  friends  and  also  to  their  govern- 
ment and  nation,  is  the  "  one  touch  of  nature  which 
makes  the  whole  would  kin." 


CHINA'S  POSSIBILITIES. 


Extracts  From  Addresses  by  Mr.  Julean  H.  Arnold, 
Commercial  Attache  to  the  American  Legation  in  Peking  : 

China  has  an  area  fifty  times  that  of  Japan,  a 
population  eight  times  greater,  a  wealth  of  natural 
resources  several  hundredfold  as  large,  and  a  people 
with  all  the  potential  capacity  of  their  island  neighbors. 

Its  foreign  trade  in  the  past  thirty  years  has 
advanced  from  eighty  to  four  hundred  millions  of  dollars 
gold.  It  should  be  many  times  greater. 

Though  it  is  the  largest  cotton  yarn  market  in 
the  word,  China  has  only  one  million  modern  spindles, 
against  two  and  a  half  times  that  number  for  Japan, 
thirty-two  times  that  number  for  the  United  States  and 
fifty  for  England. 

It  has  thirty  to  forty  modern  mills — flour,  oil,  rice, 
cotton  — match  factories,  arsenals,  shipbuilding  works, 
blast  furnaces,  electric  lighting  plants.  It  should  have 
hundreds. 

With  a  wealth  of  coal  deposits  as  great  as  those  of 
the  United  States,  China  is  to-day  still  importing  coal 
from  Japan. 

With  an  area,  including  Mongolia,  Thibet  and 
Chinese  Turkestan,  one-third  greater  than  that  of  the 
United  States,  it  has  six  thousand  miles  of  railways  to 
handle  her  transportation  needs  and  to  connect  her  with 
world  markets,  against  250,000  in  the  United  States. 

She  has  cities  of  more  than  one  hundred  thousand 
population  each  where  the  Standard  Oil  Company's  kero- 
sene lamps  are  the  greatest  luxury  in  lighting  facilities, 
where  there  exist  no  running  water  supply,  no  sewer  system, 
no  wheeled  vehicles,  no  telephones,  and  even  no  movies. 

She  has  no  water  generated  power  plants,  although 
the  country  abounds  in  waterways. 

—    16    — 


JAPAN'S  ACHIEVEMENTS. 


Extracts  from  Mr.  Arnold's  Addresses. 

Japan's  flag,  scarcely  known  in  Pacific  waters  thirty 
years  ago,  is  to-day  carried  on  two-thirds  of  the  number 
of  ships  in  the  Pacific  trade. 

Its  ships  are  in  every  ocean  on  the  face  of  the 
earth, 

Its  shipyards  are  building  four  hundred  thousand 
tons  of  additional  sea-going  tonnage. 

Its  foreign  trade  of  a  little  over  one  hundred 
million  dollars  thirty  years  ago  is  to-day  ten  times 
that  amount. 

Thirty  years  ago  its  industries  were  of  the  crude, 
household  sort ;  to-day  over  a  million  people  are  em- 
ployed in  modern  factories. 

It  has  established  its  credit  with  the  world  to  the 
extent  of  nearly  a  billion  and  a  half  dollars,  gold,  as 
measured  in  actual  foreign  loans. 

Having  a  modern  army  and  navy,  Japan  is  a  first 
class  power. 

Its  manufactured  products,  almost  unknown  thirty 
years  ago,  are  to-day  in  nearly  all  the  markets  of  the 
world. 

Its  children  attending  modern  schools  have  a  larger 
daily  average  attendance  than  the  children  of  many 
western  countries. 

It  has  lowered  its  death  rate  by  modern  sanitation. 

In  the  past  ten  years  increase  of  population  has 
advanced  from  1.02  to  1.06  to  the  hundred. 


THE  TRADE  OF  ASIA. 


An  Interview  with  Mr*  William  H,  Williams,  Vice- 

President  of  Gaston,  Williams  and  Wigmore, 

in  "Asia,"  for  April* 


"  The  United  States  wishes  to  develop  trade  rela- 
tions with  China  there  is  only  one  way  to  do  it.  The 
United  States  cannot  expect  to  sell  goods  to  China  in 
any  big  way,  with  the  possible  exception  of  those  cor- 
porations which  are  powerful  enough  to  have  their  own 
organizations,  unless  our  Government  stands  firmly  and 
solidly  behind  the  investment  of  American  capital.  It  is 
hopeless  to  expect  a  general  business  to  be  built  up 
without  investment.  If  you  will  analyze  the  figures  of 
our  commerce  with  China,  which  looks  substantial  and 
growing,  and  if  you  will  take  out  our  exports  of  Standard 
Oil,  you  will  have  very  little  left.  Business  cannot  be 
developed  with  the  Orient  by  small  traders,  based  on 
propaganda  and  talk  of  the  wonderful  possibilities  for 
American  enterprise  in  the  Far  East  and  on  the  good 
intentions  of  earnest  citizens  who  regard  the  building 
up  of  commerce  with  China  as  the  simple  matter  of 
selling  the  Chinese  merchant  something  and  buying 
something  from  him  in  return. 

JAPAN'S  AMBITION  AND  AMERICA'S 
ATTITUDE 

"  Japan  is  situated  geographically  in  such  a  way 
that  China  is  her  natural  field  for  trade  expansion. 
She  has  shown  the  intelligence,  foresight  and  vigor 
which  entitle  her  to  a  large  share  of  that  trade.  She 
is  determined  to  have  it.  Hand  in  hand  with  this 
determination  she  has  developed  a  merchant  marine 
and  a  spirit  for  foreign  enterprise  which  fit  her  eminently 
well  to  take  care  of  it.  She  is  an  island  empire  and 

—    18    — 


is  developing  in   much  the    same    way  and  with  much 
the  same  basic  power  as  England  developed. 

"  I  think  that  to  be  an  island  is  one  of  the  elements 
of  tremendous  national  strength.  By  force  of  necessity, 
such  a  country's  people  are  compelled  to  find  new 
fields  outside  their  land.  They  take  to  shipping  and 
to  foreign  trading  and  these  develop  characteristics  of 
national  strength,  both  material  and  moral,  which  go  to 
make  great  nations.  Such  trade  activities  require  and 
beget  a  spirit  of  enterprise  and  daring.  England  has 
it,  Japan  has  it,  and  in  the  same  sense  Denmark,  though 
not  quite  an  island,  has  much  of  it.  We  had  much  of 
it  in  the  early  days  when  we  had  to  trade  abroad. 

"  I  believe  that  Japan's  attitude  and  policy  with 
respect  to  China  is  exactly  correct  so  far  as  Japan  is 
concerned.  If  we  were  Japan  I  should  want  us  to  have 
the  same  attitude.  Japan  sees  in  China  her  greatest 
field  for  trade  and  material  advantage.  She  is  going 
to  develop  that  trade  to  her  own  advantage.  We  in 
her  place  should  want  to  do  the  same.  As  it  is,  we 
have  advocated  the  '  open  door '  in  China  in  order  to 
benefit  our  own  trade.  England  is  looking  out  for 
herself.  I  do  not  blame  Japan  in  her  attitude,  but  feel 
that  it  is  the  natural  one  for  her  to  take.  If  I  am  in 
business  and  my  competitor  has  a  customer  with  whom 
I  should  trade,  though  I  may  be  on  good  terms  with 
my  competitor  I  am  going  to  do  all  in  my  power  to 
get  as  much  of  the  trade  of  that  customer  for  my  firm 
as  I  can.  I  should  not  be  carrying  out  my  obligation 
if  I  did  not. 

"  If,  therefore,  Japan  has  undoubted  right  to  a  large 
share  of  the  trade  with  China  by  virtue  of  her  position, 
her  trading  ability,  and  what  is  more,  perhaps,  the 

—    19    — 


strength  of  her  government  in  standing  firmly  back  of 
a  decisive  foreign  policy,  it  is  up  to  us  to  examine  this 
attitude  and  her  rights  in  relation  to  our  own. 

CHINESE- JAPANESE-AMERICAN 
CO-OPERATION  IN  CHINA. 

"  I  know  that  Japan,  not  once  but  several  times, 
has  approached  American  capital  with  specific  proposi- 
tions for  a  definite  plan  of  co-operation  for  development 
in  China.  Her  financiers  have  urged  her  ability  to 
afford  strong  Government  protection  back  of  private 
investment  as  a  definite  reason  why  American  capital 
should  join  hands  with  Japanese  in  this  work.  I  am 
willing  to  say  to  anybody  that  in  order  to  accomplish 
the  development  of  China  during  our  time,  I  would 
have  Americans  enter  into  such  a  plan  with  the 
Japanese  on  a  basis  of  fifty- fiity  of  our  share  of  an 
enterprise  entered  into  with  the  Chinese  as  the  other 
shareholders.  In  all  enterprises  of  American  and 
Japanese  capital  in  China,  the  Chinese  must  be  partners. 

"  American  enterprise  abroad  has  never  received 
adequate  protection  from  the  United  States  Government. 
It  can  be  fairly  stated  that  during  our  lifetime  we 
shall  not  see  the  day  when  the  Chinese  will  have  their 
Government  in  such  stabilized  order  that  the  foreign 
investor  will  be  willing  to  take  the  risk  of  placing  his 
money  in  natural  resource  development  there  without 
the  guarantee  of  some  stronger  government  that  his 
money  will  be  safe.  I  say  this  in  entire  friendliness 
to  the  Chinese  and  in  the  knowledge  that  China  is 
daily  making  large  progress.  Her  affairs,  political  and 
industrial,  are  moving  ahead. 

—    20    — 


"  But  it  is  not  a  future  condition  that  the  American 
invester  can  afford  to  deal  with  now.  He  must  deal 
with  the  fact.  The  fact  is  that  he  has  not  the  con- 
fidence in  the  power  of  the  Chinese  Government, 
because  of  revolution,  local  disturbances,  disintegration 
of  central  power,  disorganized  taxation  and  currency 
systems  and  divided  authority  between  local  and  central 
government  to  give  insurance  to  an  investor  that  the 
million  or  half-million  dollars  he  has  put  into  the  deve- 
lopment of  a  Chinese  mine,  industry  or  railroad  is  so 
soundly  his  by  virtue  of  the  protection  of  some  govern- 
mental authority  that  he  can  entirely  disregard  the 
possibility  of  interference,  confiscation  or  loss.  While 
such  conditions  exist  American  capital  will  not  enter 
development  work  in  China  in  a  comprehensive  way 
and  American  trade  with  China  cannot  grow. 

"  When  a  Japanese  financial  enterprise  decides  to 
put  a  million  dollars  into  a  Chinese  steel  industry  or 
a  Chinese  mine,  its  sponsors  know  immediately  that 
they  may  rest  assured  that  their  Government  will  see 
to  it  that  no  Chinese  insurrection,  riot  or  local  inter- 
ference will  disturb  this  industry  in  the  least  respect 
and  the  money  invested.  The  very  agreement  of  the 
Chinese  Government  with  the  Japanese  Government — 
not  an  agreement  between  the  Chinese  Government  and 
the  Japanese  private  investor  but  an  agreement  with 
the  vise  of  the  Japanese  Government — guarantees 
absolute  protection  by  the  Chinese  Government. 

"  If  the  United  States  Government  would  take 
cognizance  with  its  vise  of  any  contract  or  agreement 
made  between  American  bankers  and  developers  and 
the  Chinese  Government  for  the  development  of  a  mine 
or  a  public  utility,  I  am  quite  sure  that  this  would 

—    21    — 


guarantee  full  and  undisturbed  protection  to  the  enter- 
prise through  the  Chinese  Government.  There  would 
be  involved  no  political  complications.  The  Chinese 
Government  would  see  to  it  that  every  protection  was 
afforded  such  enterprise. 

"  There  is  no  disposition  on  the  part  of  American 
enterprise  to  question  the  potentialities  for  stable  govern- 
ment and  progress  inherent  in  the  Chinese  or  the  desire 
of  the  Chinese  to  lend  assurance  to  the  foreign  investor. 
The  fact  remains,  however,  that  the  future  of  his  money 
is  regarded  as  an  uncertainty  by  the  American  investor 
under  present  conidtions.  Until  this  uncertainty  is 
removed  by  the  authority  of  our  own  Government — or 
if  our  Government  fails  to  grant  this,  by  the  authority 
of  some  other  government  whose  strength  has  already 
been  established — American  trade  with  China,  American 
development  enterprise  in  China,  cannot  advance. 

ADVANTAGES  TO  ALL  THREE 

"  Co-operation  with  Japan,  therefore,  is  a  probable 
solution  of  the  present  question.  I  repeat  that  I  regard 
Japan's  attitude  as  perfectly  correct  so  far  as  Japan  is 
concerned.  Furthermore,  it  is  to  our  advantage  to  join 
with  Japan.  Where  I  know  in  business  that  a  com- 
petitor of  mine  is  not  only  determined  to  get  a  large 
and  valuable  business  which  I  want  also,  but  is  well 
fitted  to  carry  out  that  determination  by  virtue  of  the 
natural  advantages  he  possesses,  by  his  native  ability 
and  by  intelligent  leadership,  and  when  that  competitor 
in  this  situation  comes  to  me  and  offers  to  co-operate 
with  me  in  developing  this  business  hand  in  hand  on 
an  equal  basis,  using  his  ability  and  knowledge  and 

—    22    — 


position    to    match  my  money,    I    should    gladly  enter 
such  a  co-operative  arrangement. 

"  I  should  not  enter  any  such  arrangement  of  co- 
operation, however,  without  the  primary  object  in  mind 
of  developing  China  for  the  advantage  of  China.  China, 
Japan  and  the  United  States  should  work  together. 
The  United  States  should  enunciate  its  policy  to  be  one 
of  willingness  to  work  with  Japanese  financiers  in  the 
development  of  China  on  the  sole  basis  that  in  all  such 
enterprises  Chinese  capital  and  Chinese  participation 
should  enter  to  the  advantage  of  China.  When  I  speak 
of  a  fifty-fifty  arrangement  with  Japan,  I  mean  a  division 
between  Japan  and  this  country  of  the  share  in  such 
enterprise  other  than  that  held  by  the  Chinese.  There 
can  be  no  real  development  of  China  unless  the  Chinese 
participate.  It  is  their  country.  They  know  the  country. 
They  have  some  capital  and  are  willing  to  invest  it. 
They  are  a  wonderful  people.  I  should  not  have 
Americans  enter  into  any  development  work  in  China 
except  that  which  would  be  to  the  advantage  especially 
of  the  Chinese. 

"  I  believe  that  Japan  is  sincere,  that  she  wants  an 
opportunity  for  trade  development,  that  she  does  not 
want  to  rule  China.  I  believe  that  this  country  should 
take  Japan  at  her  word  and  enter  into  co-operation 
with  her." 


THE  FIELD  IN  CHINA. 


An  Address  by  Mr*  W»  F.  Carey  Before  the  American 
Association  of  Peking,  May  JJ* 


Mr.  W.  F.  Carey,  of  the  Siems,  Carey  Company, 
addressed  the  American  Association  of  Peking  on  May 
12,  on  the  occasion  of  a  dinner  given  by  the  association. 
Mr.  Carey  expressed  himself  as  being  in  harmony  with 
the  objects  of  the  association  and  said  he  would  always 
do  his  best  to  co-operate  with  American  business  men 
in  whatever  way  he  could  for  the  benefit  of  all  of  them. 
Although  China  had  a  field  for  investment,  they  must 
be  careful  to  find  out  what  sort  of  business  China  could 
attract.  There  was  no  big  field  for  merchant  classes. 
To  find  capital  was  one  of  China's  biggest  problems. 
China  for  centuries  had  done  business  on  a  basis  which 
America  could  not  understand  and  would  not  follow. 
Business  operations  had  to  be  clearly  defined  and  must 
lead  to  no  uneasiness.  American  capital  was  not  only 
willing  but  anxious  to  come  to  China.  Chinese  had 
great  faith  in  their  word,  which  was  not  to  be  gainsaid, 
but  they  were  inclined  to  be  a  little  careless  as  to 
future  guarantees.  China's  word  was  as  good  as  it 
ever  was.  China  had  never  at  any  time  forfeited  her 
obligations  and  her  word  would  always  remain  good. 
(Applause).  But  matters  must  be  clearly  cut  and  well- 
defined  before  Americans  would  consent  to  do  business. 
He  hoped  that  the  visiting  American  business  men 
would  not  leave  the  country  discouraged,  but  he  could 
assure  them  that  the  political  situation  would  not  affect 
their  enterprises.  Increased  business  was  bound  in  future 
to  roll  across  the  country.  In  conclusion,  the  speaker 
paid  a  handsome  tribute  to  the  American  Minister,  who, 
he  said,  had  done  more  than  any  other  man  to  advance 
the  interests  of  Americans  and  who  was  at  all  times 
ready  to  take  his  coat  off  for  the  benefit  of  his  fellow- 
citizens.  (Applause.) 


—    24    — 


A  MANUFACTURER'S  VIEW. 


Address  by  Mr.  Anson  W*  Bttrchard  Before  the 
America- Japan  Society,  May  U. 

Japanese  and  American  co-operation  received 
endorsement  from  a  man  highly  qualified  to  speak  on 
this  subject,  at  the  inaugural  banquet  of  the  America- 
Japan  Society,  held  in  Tokyo  May  11,  when  Mr. 
Anson  W.  Burchard,  executive  vice-president  of  the 
General  Electric  Company,  was  one  of  the  principal 
speakers.  Mr.  Burchard  gave  an  account  of  the  joint 
manufacturing  enterprises  conducted  by  the  General 
Electric  Company  in  Japan,  in  which,  he  said,  the 
co-operation  of  Americans  and  Japanese  had  been 
attended  with  highly  satisfactory  results. 

Mr.  Burchard  emphasized  the  importance  of 
personal  contact  between  the  leading  men  of  the 
two  countries  for  better  understanding  and  sounder 
international  relations.  "  Nothing  is  so  effective  as 
personal  contact  in  promoting  understanding,  and  in 
clearing  away  differences,"  said  Mr.  Burchard,  "  and  to 
that  end  encouragement  of  travel  between  Japan  and 
America  is,  I  believe,  one  of  the  most  important  direc- 
tions in  which  the  influence  of  this  Society  can  be 
exercised. 

"  The  interest  in  Japan  of  American  men  of 
affairs,  initiated  by  the  favorable  impressions  they  have 
gained  from  the  representative  citizens  of  Japan  whom 
they  have  the  privilege  of  meeting  in  America,  is 
rapidly  growing  and  has  stimulated  in  them  the  desire 
to  familiarize  themselves  with  the  institutions,  industries 
and  other  features  of  this  country  by  personal  contact 
and  study.  In  this  connection,  the  highly  patriotic  and 
disinterested  visits  to  America  of  that  distinguished 
Japanese,  Baron  Shibusawa,  constitute  a  notable  ex- 

—    25    — 


ample.  It  is  from  this  personal  acquaintance  of  the 
people  of  the  two  countries,  thereby  bringing  about 
better  understanding,  not  only  of  their  personal  charac- 
teristics, but  also  of  their  respective  political,  economic 
and  sociological  problems,  that  we  may  look  for  greatest 
forward  progress  in  achieving  the  aims  of  this  Society." 

Mr.  Burchard  went  on  to  discuss  some  aspects  of 
co-operation  as  a  factor  in  international  relations.  "  The 
forces  made  available  to  mankind  through  the  technical 
and  scientific  development  of  the  past  century,"  he  said, 
"  have  become  so  powerful  that  when  directed  to  the 
accomplishment  of  a  purpose  by  antagonistic  methods, 
they  become  destructive.  The  terrible  war  now  raging 
in  Europe  affords  the  most  appalling  example  of  the 
consequences  of  the  attempt  to  achieve  an  ambition  by 
methods  of  strife.  And  in  industry  and  commerce  this 
principle  applies  with  equal  force :  forward  progress 
must  be  realized  through  co-operation,  by  united  effort, 
giving  consideration  to  the  rights  of  others,  and  accept- 
ing as  a  reward  a  fair  participation  in  the  resultant  ad- 
vance of  the  entire  body  of  the  industrial  and 
commercial  interests  concerned." 

Mr.  Burchard  turned  last  to  the  more  concrete 
subject  of  the  working  together  of  Americans  and 
Japanese  in  financial  and  industrial  undertakings. 
Speaking  of  the  partnership  between  his  own  company 
and  its  Japanese  associates,  he  said  : 

"  Such  a  partnership,  whereby,  with  the  adap- 
tability, craftmanship,  skill  and  industry  of  the  Japanese, 
there  has  been  combined  the  technical  and  manufac- 
turing experience  of  the  earlier  established  enterprise 
of  America,  constitutes  an  example  of  practical 
co-operation. 

—    26    — 


"  It  will  be  recognized,  without  the  slightest  degree 
of  disparagement  of  the  notable  achievements  of  the 
Japanese  in  many  fields,  that  the  ingenious  Americans 
turned  their  attention  to  the  art  of  the  manufacturer  with 
large  centralized  units  of  production  at  an  earlier  date 
than  the  Japanese,  and  it  was  to  be  expected  that  with 
the  abundance  of  raw  materials  in  America — coal,  iron, 
copper,  cotton,  etc. — and  with  the  large  water  power 
available  in  the  Eastern  States  of  America,  where  the 
people  first  made  manufacturing  their  principal  avoca- 
tion, the  industries  of  that  country  would  be  established 
on  a  modern  basis  earlier  than  in  Japan,  where  their 
development  according  to  modern  methods  began  at  a 
considerably  later  period. 

"  The  great  opportunity  for  productive  co-operative 
effort  between  the  Japanese  and  the  Americans  lies 
in  such  a  co-ordination  of  the  elements  of  succesful 
industrial  development  as  is  illustrated  by  the  ex- 
perience which  I  have  attempted  to  describe.  The 
field  is  a  broad  one,  manufacturing,  mining,  public 
utility  enterprises,  in  fact  in  every  example  of  the 
application  of  modern  science  and  invention  to  the  use 
and  convenience  of  mankind.  I  am  confident  that  the 
alert  and  sagacious  Japanese  and  the  resourceful 
Americans  will  not  fail  to  sieze  tiiese  opportunities." 


CHINA'S  NATIONAL  DEBT. 


BY  CRAWFORD  M.  BISHOP 
FORMERLY  UNITED  STATES  VICE-CONSUL  IN  CHINA. 

The  total  outstanding  indebtedness  of  the  Central 
Government  of  China  to-day  is  approximately 
$837,000,000  gold.  Of  this  amount  $814,000,000  re- 
presents foreign  indebtedness.  Comparing  China  with 
the  United  States  and  Japan,  we  have  : 

Country.  Population.  Debt.  Debt. 

Per  Capita. 

United  States...  95,411,000  $1,026,686,026     $10.76 

Japan  52,312,000     1,251,316,800       23.92 

China 400,000,000        836,947,410         2.08 

During  the  past  year  the  returns  from  China's 
main  sources  of  taxation  have  been  : 

Revenue.  Amount  in  Mexican  Administration, 

dollars. 

Salt  Revenue    $72,440,559  Foreign 

Land  Tax 65,400,000  Native 

Native     Customs      or 

Likin 62,000,000  Native 

Maratime  Customs  ...  50,112,000  Foreign 

The  budget  for  the  Chinese  Government  for  1917 
indicates  : 

Receipts    $  411,389,356  Mex. 

Expenditures    525,897,446 

The  best  evidence  of  the  advantages  derived  from 
foreign  administration  is  shown  by  a  comparison  of  the 
revenues  derived  from  the  salt  tax  when  under  native  as 
compared  with  foreign  control.  The  revenue  under  native 
control,  before  the  reorganization,  was  $  16,333,833, 
Mex.;  the  revenue  under  foreign  control,  collections  of 
1916,  $72,440,559,  Mex. 

—    28    — 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 
BERKELEY 

Tins  BOOK  IS  DTjTo^  THE  LAST  DATE 
STAMPED  BELOW 

Books  act  returned  on  time  are 
per  volume  after  the  tttntt  aa 


OCT  24  1917 
APR  8  1919 

OCT  16  1918 
"  18  W9 


NDV2.?,2003 


50?n-7,'l 


GAYLORD 

BROS.,  INC 

Manufacture™ 

Syracuse,  N.  Y. 
Stockton,  Calif. 


